The federal government has pledged to invest $1.1 billion in the conversion of its underused office buildings into housing.

Prime Minister Justin Trudeau’s Liberal government introduced the plan as part of the 2024-25 budget. The goal is to transform 50% of the federal office portfolio into 250,000 new homes by 2031, the government said in a budget backgrounder. Jean-Yves Duclos, the minister of public services and procurement, had hinted of the plan in October, when he told CTV News that the government needs to repurpose office buildings into residential properties as it disposes of federal properties in Ottawa.

Many of the conversions are expected to occur in the nation’s capital, and Duclos called for its downtown to be revitalized during the interview with CTV.

The federal government also plans to build homes on Canada Post properties. In a budget backgrounder, the government says 1,700 Canada Post properties across Canada can be used for home construction while maintaining their postal functions.

The government is assessing six Canada Post properties in Quebec, Alberta and B.C. for their residential development potential.

Meanwhile, the government will look at redeveloping structures on National Defence lands for military and civilian purposes and examine the possibility of taxing owners of vacant land to incentivize home construction.

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